C5L^ A' 3^^ Am
THIRD ANNUAL REPORT
NORTH CAROLINA J
ilhttttaf Cifc Unmxantz xlompamj :
BY-LAWS' AND ACT OF INCORPORATION.
THIRD ANNUAL REPORT
ftatiial £ik insurants ComjMiig
TOGETHER -WITH ITS
BY-LAWS AND ACT OF INCORPORATION
INCORPORATED, JANUARY, 1849.
PRINTED BY SEATON GALES?
CHARLES E. JOHNSON, j WM. W. HOLDEN,
WM. D. HAYWOOD, WM. D. COOKE,
JAMES F. JORDAN, WM. H. JONES,
PERRIN BUSBEE, SEATON GALES,
H. W. HUSTED, F. C. HILL,
WM, H. McKEE, j CHARLES B. ROOT,
WILLIAM K. SCOTT.
CHARLES E. JOHNSON, President '
WILLIAM D. HAYWOOD, Vice-President
JAMES F. JORDAN, Secretary,
WILLIAM D. COOKE, ~v
WILLIAM R. SCOTT, I Executive Committee,
CHARLES B. ROOT, j
CHAS. E. JOHNSON, M. D., i ^.^ ^ of
WM. H. McKEE, M. D., ^citation.
R. B. HAYWOOD, M. D., J
WILLIAM H. McKEE, M. D., Medical Examiner.
WILLIAM II. JONES, Treasurer.
PERRIN BUSBEE, Attorney.
J. HERSMAN, General Agent.
The following statement will show the operations and condition
of the Company, to the 20th June, 1852.
Whole No. of Policies issued to 20th June, -
Deduct Policies Cancelled and Expired, - -
Policies in Force,
Amount on hand, as per last Report, - - •
Nett Premiums received to 20th June, - •
Amount of Interest received to 20th June,
White Losses, - $17,000 00
Slave Losses, 5,660 00
Fees and Commissions to Agents,
Fees to Physicians,
Printing, Advertising, and
Office Rent and Postage,
Incidental Expenses 3 f c q 7fi ««
Prem. Notes drawing 6 per cent. Int. $40,785 21
Bank Stock and Ind. Bonds, - - 10,971 00
Amount in hands of Treasurer, - - 6,474 06
.Amount in hands of Agents, - * - 2,681 14
The Directors of the North Carolina Mutual Life Insurance
Company present the foregoing statement as their Third Annual
Report to the members of the Company.
By reference to this statement, it will be seen that, whilst
there has not been a very great increase of business, the accu-
mulated capital of the Company is amply sufficient, independ-
ent of the Sound Assurance Principles upon which this Com-
pany is conducted, to afford a sure guarantee to the Member in
case of Death.
As it is a matter of no small importance, that the transac-
tions of this Company should be well understood by all its
Members, the Directors take the liberty of calling their attention
to the last clause of the eleventh section of the By-Laws : This
Regulation provides that, " If the Premium is paid within
forty days after it is due, the Party talcing the risk of Death
during the forty days, the Policy will be renewed without Extra
They will likewise mention in this connection, what they
desire shall be distinctly understood as a settled law of the
Company, viz : That where a life member forfeits his Policy,
the Board will, in every case, proceed to collect the Premium
Note, which has been given in part payment of the Premium.
The justice of this law is obvious; for, not to mention other sources
of evil and imposition, which the neglect of it might open upon
the Company, it would be so strong an inducement for those,
who had, with the best intentions and purposes, taken out a
Policy of Insurance for life, to suffer it to expire after a short
time from mere whim or caprice.
Upon the subject of Slave Insurance, the Directors have
again increased the rate of Premium. This has been done
because, in the opinion of the Directors, the nature of the risk
and the best interest of the Company require it.
The Directors have this day declared a dividend of 15 per
cent, to the life members, who have renewed their policies prior
to the first Monday of July. This dividend has been carried
to the credit of each member entitled to it, and will be allowed
on the Premium Note at the next annual renewal ; or, where
the whole Premium has been paid in cash, the dividend will be
allowed as cash in the next annual payment of the Premium.
1— 1 u
lOCOMHO i— 1 i— 1
Intus-susception of the Intestines,
Inflammation of the Bowels,
Nervous affection of the Brain,
Organic disease of the Heart,
Pnexxmonia and Accidents,
Salisbury, N. C,
Elizabeth City, "
Columbia, S. C.
Newbern, N. C.
Columbia, S. C.
Wilmington, N. C.
'Green Co., Ala.
Aiken. S. C.
John B. Lox"d,
Joshua A. Pool,
William 0. Cain
James N. Fixller,
W. P. Moore,
E. D. Gillmore,
Dr. W. W. Harriss,
E. W. Ogburne,
E. W. Wilkings,
John P. Rice,
Jas. C. Sproull, & Co.
©¥ = [Li\WS =
■Section 1. — The Officers of this Company shall consist of a
President, Vice-President, Secretary, Treasurer, Attorney, and
a Medical Board of Consultation, consisting of three.
Sec. 2. — There shall be an Executive Committee, consisting
of three, appointed annually from the Board of Directors.
Sec. 3. — The members of this Company shall hold a meeting
annually, for the purpose of electing a Board of Directors, on
the first Monday in July in each year, at the Office of the Com-
Sec. 4. — The President shall preside at all Meetings of the
Board of Directors, sign all Policies of Insurance, call special
Meetings of the Board of Directors, -when he shall deem the
rsame necessary, or when requested in writing, signed by three
Directors, and exercise a general superintendence over the affairs
of the Company ; and in his absence the Vice-President shall
discharge the same duties.
Sec. 5. — The Secretary shall keep a record of the proceed-
ings of the Board of Directors, Executive Committee, and of the
Company ; preserve the Premium Notes and Applications ; shall
keep a General and Termination Register ; a Journal and Led-
ger ; a Book of Alienations and Surrenders ; he shall collect all
assessments that may be made, and once in thirty days pay over
to the Treasurer all monies in his hands belonging to the Com-
pany, and take his receipt for the same. It shall be his duty to
give notice of the election of Directors, as provided in the Act
of Incorporation. He shall give a bond, with such sureties as
the Executive Committee shall approve, in the penal sum of five
thousand dollars, conditioned for the faithful performance of his
duty as Secretary. >
Sec. 6. — The Treasurer shall have the care of all the money
belonging to the Company, and shall keep a correct account of
all receipts and disbursements. All payments by the Treasurer
shall be made upon warrant from the President, attested by
the Secretary ; and such payment, so attested, shall be a good
'md sufficient voucher for the Treasurer in the settlement of
his account. He shall give a bond to the Company, to be ap-
proved by the Executive Committee, in the penal sum of ten
thousand dollars, conditioned for the faithful discharge of his
luty as Treasurer. He shall render an account of his trust,
when required by the Board or Executive Committee.
Sec. 7. — The Executive Committee shall audit all accounts
presented for payment, and possess the power to transact the
business of the Company in the absence of the Board of Direc-
tors, agreeably to such rules and regulations as may from time
to time be adopted by the Board ; may, in their discretion, give
the consent of the Company to any member who may wish to
exceed the limits of travel prescribed in the Policy, and such con-
sent shall be signed by the President and attested by the Sec-
retary ; shall examine all applications for Insurance, and, if
approved, the Secretary shall issue a policy thereon.
Sec. 8. — Persons proposing for Insurance shall fill the appli-
cation blanks furnished by the Company ; the party to be in-
sured must be examined by the Family Physician of the party
and a Medical Examiner of the Company, and, previous to be-
ing insured, deposite his application and Premium Note, if
any, with the Secretary of said Company : and, if approved by
the Executive Committee, the Policy shall bear date with such
approval, and take effect at noon of that clay. The Company
will not, however, be held responsible to the party applying for '
Insurance, should he die before his application is approved by
the Executive Committee.
Sec. 9. — Premium on Policies for Life, for thirty dollars or
over, per annum, may be paid as follows, viz : One half in cash,
and one half in a note, at twelve months, bearing interest at six
per cent, per annum. Premium on all Policies for a less period
than the duration of life, shall be paid in cash. The applicant
will, in all cases, pay one dollar for Policy and one dollar for
Sec. 10. — Parties insured at the table rates of Premium are
not allowed to pass South of the southern boundary of South
Carolina and Tennessee, nor Weoi; of the Mississippi River,
between the 15th of June, and the 15th of October, without the
written consent of the Company, but, between the 15th of
October, and the 15th of -June, may reside or travel in any part
of the United States, (California, and the Territories of the
United States excepted,) or within the settled limits of the
British Provinces of the Canadas, Nova Scotia and New
Brunswick. Mail routes by sea, between ports lying in those
portions of the United States not excepted above, may be
travelled without forfeiture of Policy.
Sec. 11. — A party neglecting to settle his annual premium,
to pfty the per centage when called for by the Directors, within
forty days after it is due, or to pay assessments, when called
for, within forty clays, shall forfeit all the interest he has in the
Policy ; also, in case the party shall exceed the limits prescrib-
ed in the Policy for residence, or travel upon the seas, without
the written corflfbnt of the Company, and shall die in conse-
quence thereof, or shall die by the hands of justice, or in an
attempt to violate any law of the land where he may happen
to be, or in a duel, or from drunkenness, or by his own hand,
(except in case of insanity, whereof written notice has been
previously given to the Company, or where it is clearly proven
to have existed,) or if the party enters into any military or na-
val service (the militia not in actual service excepted,) he shall
forfeit his Policy, all monies paid, and all profits due thereon ,
If the premium is paid within forty days after it is due (the par-
ti/ taking the risk of the death during the forty dags,) the Folic;/
will be renewed without extra charge.
Sec. 12. — Within forty days from the first Monday in July.
in each year, a Statement or Annual Report of the affairs of the
Company shall be made out by the Secretary, and an Annual
Dividend of the profits shall be made, when all Policies for Life,
which have been renewed prior to said Dividend, and then in
force, shall have their per centage of profits carried to their cre-
dit ; and all parties insured, whose Policies have been renewed
as aforesaid, shall receive a notice, signed by the President and
attested by the Secretary, of such profits, which shall be de-
ducted from the amount of their Premium Notes at the next
annual renewal, or, in case of cash payments, allowed as such at
the next annual renewal. In case of the death of any member,
the amount then standing to his or her credit shall be paid over
to the representatives of said party, after deducting all indebt-
edness to the Company.
Sec. 13. — All claims for Insurance against the Company shall
be paid within ninety days after due notice and proof of the
death of the party ; all indebtedness to the Company upon^ said
Policy to be deducted.
Sec. 14 — The funds of this Company shall, with the exception
of what may, in the judgment of the President, Treasurer, and
Secretary, be reserved for contingencies, be invested from time
to time, by said Officers, in behalf of the Conrnany, in Stock of
any of the Banks of this State, in United States' Government
Stock, or in State Bonds of North Carolina, or in individual se-
curities; Provided, That no loan shall be made to any Director,
Officer, or Agent of the Company, nor the name of any Director,
Officer, or Agent taken as surety on any bond for such loan.
Sec. 15. — It shall be thed uty of the Board of Directors, at each
Annual Meeting, to set apart such amount for the contingent
or reserved fund, as shall, in their judgment, be deemed best
for the interest and welfare of the Company.
Sec. 16. — The Board of Directors, or the Executive Commit-
tee, may appoint as many Agents as they may deem necessary
for the better management of the affairs of this Company ; and
such agents shall, if required, give bonds to the Company, with
.such sureties as the Executive Committee shall approve, in tine
penal sum of one thousand dollars, conditioned for the faithful
discharge of the duties of their office.
Sec. 17. — Slaves may be insured by their owners, or others
interested, for two-thirds of their value only, for a term not ex-
ceeding five years ; and the Insurance on slaves shall be gov-'
erned by the above rules and conditions, adopted for the regu-
lation of this Company. But slaves are not allowed to travel
beyond the limits prescribed by the Policy.
Sec. 18. — If a Policy is assigned, notice to be given the Com-
pany, and the party to whom the Policy is transferred must sign
all Premium Notes with the insured.
Sec 19. — The Company will decline all applications for In-
surance on persons whose pulse is uniformly over ninety.
8 ElillB 1 !? HIE
,il^ Atf to Incorporate a Mutual Life Insurance
Company in tlie State of North Carolina..
1. Be it enacted by the General Assembly of the Siais of
North Carolina, and it is hereby enacted by the authority of
the same, That John H. Manly, Henry W. Miller, Perrln Bus-
bee, II. W. Husted, William II. McKee, William W. Holden,
William D. Cooke, William II. Jones, James F. Jordan, Charles
B. Root, Charles E. Johnson, William D. Haywood, William R.
Scott, and others, their associates, successors, and assigns, shall
be and are hereby constituted and declared to be a body politic
and corporate, in fact and in name, by the name of the North
Carolina Mutual Life Insurance Company, to be located at
such a place in the City of Raleigh, as shall be designated by a
majority of the Company present at any regular meeting, and
by that name, they and their successors shall and may have
succession during the continuance of this Act, and 3hall be
capable of suing and being sued, pleading and being impleaded,
answering and being answered unto, defending and being
defended, in all manner of actions, suits, complaints, matters
and causes whatsoever ; and that they and their successors may
have a common seal, and may alter and change the same at
pleasure. And, also, that they and their successors, by the
name of the " North Carolina Mutual Life Insurance Company,"
shall be, in law, capable of purchasing, holding, and conveying,
any estate, real or personal, for the use of said Corporation.
2. Be it further enacted, That all persons who shall, at any
time hereafter, insure in or with the Corporation, shall, while
they continue so insured, be deemed and taken as Members of
the said Corporation ; and that the property and concerns of
the said Corporation shall be managed by thirteen Directors, aid
of whom shall be citizens of this State, to be chosen annually,
by and from among the members, and shall hold their office for
one year, and until others are chosen ; and that a meeting of
the members of the Corporation shall be held annually, for the
purpose of electing a Board of Directors, at such time and
place, in the City of Raleigh, as the Corporation, in its By-Laws,
shall appoint ; of which election, public notice shall be given
in at least one of the Public Newspapers printed in said City,
at least thirty days preceding such election ; and such election
shall be made by ballot, and a plura lity of the votes of the
members present, allowing to each member one vote for every
one hundred dollars insured in said Company. And if any of
the said Directors shall die, refuse to serve, or neglect to act in
their said office for the space of two months, then, and in every
such case, the remaining Directors shall have power to fill such
vacancies, until the next annual meeting.
3. Be it further enacted, That it shall and may be lawful for
the said Corporation to insure their respective lives, and to
make all and every Insurance appertaining to, or connected
with Life risks, of whatsoever kind or nature, as well of the
*ound in health as the infirm or invalid.
4. Be it further enacted, That it shall be lawful for any mar-
ried woman, by herself, and in her own name, or in the name of
any third person, with his assent, as her Trustee, to cause to be
insured, for her sole use, the life of her husband, for any definite
period, or for the time of his natural life ; and in case of sur-
viving her husband, the same, or nett amount of the Insurance
becoming payable to her, to and for her own use, free from the
claims of the representatives of her husband, or any of his
5. Be it further enacted, That the husband may insure his
own life for the sole use and benefit of his wife and children ;
and, in case of the death of the husband, the amount thus
insured shall be paid over to the wife and children, or their
guardian, if under age, for her or their own use, free from all
the claims of the representatives of the husband, or any of his
6. Be it further enacted, That the Directors, for the time being,
or a majority of them, shall have power to make and prescribe
such By-Laws, Rules, and Regulations, as to them shall appear
needful and proper, for the management and disposition of the
stock, property, estate, and effects of the said Corporation, and
for all such matters as appertain to the businsss thereof; and
shall have power to appoint such Officers, Clerk, and Agents, for
carrying on the business of the Corporation, as they may select,
with such allowances as to them shall appear just and satisfac-
tory : Provided, That such By-Laws, Rules, and Regulations,
shall not be repugnant to the Constitution or Laws of the United
States, or of this State. .
7. Be it further enacted, That no Policy shall be issued by this
Corporation, until application shall be made for Insurance for
Fifty Thousand Dollars, at least.
8. Be it further enacted, That this Act shall continue in fore*
for fifty years.
9. Be it further enacted, That this Act shall take effect
immediately after its ratification.
>n ©if l©§§ i^iaiyrai®.
A certificate of the Physician who attended the party in hia
last illness, stating particularly the nature of the disease, its
duration, and the time he died.
A certificate of a friend or intimate acquaintance, stating how
long he was sick, and that he was present during his illness, or
at his death, and that he is knowing to his death.
A certificate of the Undertaker, or Sexton, who attended the
funeral of the party, and saw his remains interred.
These several certificates must be sworn or affirmed to, before
a magistrate, or some one empowered to administer an oath or
When it is a wife's policy on the life of her husband, or of s
party insuring the life of another, or in case of an assigned
policy, a receipt on the policy is sufficient, from the parties
holding such policies. But when a party insures his own life,
in case of loss, the insurance must be collected by an Executor
or Administrator, legally authorized to settle the estate, and the
policy must be surrendered, receipted by the Executor or
IB USD & IS IX §»
Until within a few years past, Life Insurance in this country
was not known, except through the agencies of a few European
Companies in our populous cities ; and the first attempt to es-
t ablish such Companies in this country was regarded as an in-
fringement upon the decrees of that Superintending Provi-
dence, which hath "appointed unto all men once to die." Many
supposed that, being unwilling to confide our doctrines to the
Supreme Ruler of the Universe, we were about to transfer the
safety of human life to the keeping of our fellow men.
It has by some been doubted whether any thing like an accu-
rate calculation of the mean duration of life can be made ; and
that any attempt to base the chances of success upon the average
bills of mortality, would be exceedingly unsafe. In this opinion,
however candidly entertained, there is a decided error. The ex-
perience of an accurate observation of nearly two hundred years
has proved that it is possible to make a calculation of human
life, which will not in that time vary 6 per cent.
The first table made in England, showing the expectation of
life at various ages, was by Dr. Price, from observations of the
Bills of Mortality in Northampton ; and, fifty years subsequent
to this time, the Carlisle table was made by Joshua Milne, from
observations of Dr. Heysham of Carlisle ; this was from 1779 to
The decrements of life in these tables differ very materially .
the Northampton is much greater than the Carlisle. This dis-
crepancy can readily be reconciled, by taking into account the
difference in the location of the two places. The Northampton
District is decidedly unhealthy, while the Carlisle has always
been regarded as one of the most healthy Districts in England.
The Northampton tables make the whole number of persons
lembraced in their calculations become extinct at the age of 96
and the Carlisle at 104. Various other tabular views or the
bills of mortality have been compiled in various districts of En-
gland, and on the European Continent, by men of deep research;
and an immense amount of facts have thus been given to the
world, which have formed the basis of the law of average of
human life, and the value of annuities, and a correct scale or tar-
iff of Premiums on Life Insurance.
Life Insurance only guarantees the laws of average ; it is not
founded on the calculation whether death will or will not hap-
pen. Death is inevitably the fate of all men. Every person
born must die ; but most live through a series of years, and the
law of average and duration of human life is reduced almost to
an exact science, and furnishes a data upon which to base the
operations of a Life Insurance Company, without subjecting it
to any contingency which can impair its ability to meet its los-
ses. In this respect, it is very different from all other species
of Insurance. The Insurer of a number of houses does not
know whether a fire shall occur among his risks or not. ' The
Underwriter for the vessel which leaves on a distant voyage,
does not know whether the elements shall be prosperous for
the safety of the noble bark, or otherwise. The Health Insurer
does not know whether his subject shall continue well, or be
taken sick. There is no positive data upon which to base the
calculations of success in Companies of this kind ; but, in Life
Insurance, death is regarded as a fixed fact — "dust thou art,
and unto dust thou shalt return" — and all the calculations are
made in view of the final drama of human life.
Among the different tables in use with Insurance Companies,
the Carlisle seems to be the favorite. Its calculations are found
to apply with exceeding minuteness to the present experience
of Insurance Companies in the middle States of our Union, and
all that have adopted it seem to be doing a safe and profitable
Life Insurance Companies are divided into three classes, viz :
Joint Stock, Mixed, and Mutual. The Joint Stock Company
has a Capital furnished by subscription as a means of invest-
ing surplus funds, and whatever accumulation of profits occur,
they are placed to the credit of each Stockholder as a specula-
tion on his part. In a Mixed Company, there is a a partial
division of profits, according to the mod6 fixed for a division of
profits among themselves.
In the Mutual system, all Life Insurers are equally entitled to
the profits of the Company, in proportion to the amount of prem-
iums by them respectively paid in ; all are entitled to share in
its management and deliberations, and all stimulated by the
same interest in securing a successful administration of its af-
fairs. It thus presents the strongest inducements to the insurer ;
and whilst it cannot be denied that these features of the Mutual
System have of late years attracted the most favorable consid-
eration of the public, it is equally true that the experience of
such Companies, well conducted, shows they have been uniform-
ly and eminently successful.
By reference to the charter of this Company hereunto annex-
ed, it will be perceived that the privilege is granted to a Hus
band to insure his own life for the benefit of his Wife and Chil-
dren, without any liability to have the amount diverted to the
payment of any contracts, or debts of his own ; and in like man-
ner the wife may insure the life of her husband, subject to the
eame regulations. These are highly important features in our
character, which will readily commend themselves to the atten-
tion of the intelligent reader. This company also gives an an-
nual division of profits to all life insurers, and proposes to charge
no more for insurance than actual cost. The abundant success
■which has attended other companies, based upon similar prin-
ciples, leaves no doubt as to the efficiency of the institution,
and also its ability promptly to discharge all claims accruing
The North Carolina Company will also insure the lives of all
healthy Slaves from a period of one to five years : but, in no case
can their owners or insurers participate in the profits of the
This feature is deemed a most important desideratum to the
people of North Carolina and adjoining States. It opens a new
field of thought to our planters, and other slave owners, and
proposes to secure them in the possession of that kind of prop-
erty, which constitutes half of the actual wealth of the State. —
Its utility has thus far heen recognized on all hands ; and it is
confidently predicted that the day is not far distant when this
species of property will be almost universally under insurance.
But it can scarcely be deemed necessary, at this day, to enter
into an elaborate argument to show the advantages and benefits
of Life Insurance. The system speaks for itself. It is known
by its fruits, not only in Europe but in this country ; and its
usefulness, in the future, must keep pace with the expectations
of society and the demands of an enlightened civilization.
ANNUAL RATES OF INSURANCE
Of One Hundred Dollars, on a Single Life, for one year,
seven years, and for life.
) S O ICO
aa • '
sa . |
!S a . a a . :
^3 f S 1
; a « =3 (ev3
-— o >> \
Age. U* 1 * 1 j-^
II th 111"
1 78 |
1 88 :
1 85 !
1 89 i
1 91 i
4 49 |
1 03 '
1 07 !
4 90 |
5 49 1
1 35 |
1 36 !
! 7 85
! 8 15
i 8 55
9 45 1
Annual Rates of Insurance of One Hundred Dollars, on the
Life of a Slave, for one year, and for five years.
1 Year. 1 5
10 years, j
$2 20 j
11 " • :
12 «■■• !
14 " i
17 " .
3 33 ,
3 31 I
i 3 50.1
3 66 j
: 2 00
i 2 04
: 4 18
4 64 1
1 2 06
i 4 43
i 2 11
! 4 73
. 5 11
| 5 50
\ 5 95
': 6 12
6 80 !
i 6 53 1
7 24 !
i 2 33
6 94 I
7 70 |
< 2 16
i 2 41
EXTRA RATES OF INS. ON SLAVES,
Slaves in Coal Pits,
On Eail Koads,
On Steam Boats,
On Canal Boats,
On Fishing Boats,
On Pilot Boats,
1$ per cent, extra.
Premiums on One Hundred Dollars for Insuring two Lives,
payable when either shall fail.